The sales tax holiday, from August 8-10, will save back-to-school shoppers some money, but not everything is tax-exempt.
Tax-free weekend provides Texans with a holiday free from tax, exempting most clothes, shoes, and school supplies under $100.
The sales tax holiday, from August 8-10, will save back-to-school shoppers some money, but not everything is tax-exempt. Here's some important information on what you should know about the sales tax holiday:
Clothes and Shoes
The sales tax exemption applies to each item under $100. If the item is priced over $99.99, then sales tax will be applied for the entire item. The exemption does not apply to most sporting goods normally worn for athletic events (like protective gear). Golf cleats and football pads will not be tax exempt, but tennis shoes and swimsuits will. Rentals, alterations, and cleaning services on shoes and clothes will not be tax exempt. Accessories, including jewelry, handbags, purses, briefcases, luggage, umbrellas, and wallets, will not be tax exempt.
Backpacks will be exempt, if priced under $100. The exemption includes backpacks with wheels, only if they can be worn on the back. Luggage, briefcases, gym bags, computer bags, and purses will not be tax exempt. Ten or fewer backpacks can be purchased at one time tax-free.
School supplies will be tax-free without an exemption certificate, unless they are being purchased with a business account. An exemption certificate will be required for purchases with a business credit card or business check.
Layaways and Rainchecks
If the item is placed in layaway on the tax-free weekend, or if the final payment is made during that time, then the item will be tax-free. Items purchased with the use of a raincheck will be tax-free if purchased on the sales tax holiday. If the raincheck is issued during the holiday, but the purchase comes after August 10, then tax will be applied.
According to the Texas Comptroller, shoppers will save around $82.7 million in state and local sales taxes this year. Lists of clothes, shoes, and school supplies that can be purchased tax free can be found on the Comptroller's website. Copyright 2014 KLTV. All rights reserved.
Thursday, September 11 2014 5:21 AM EDT2014-09-11 09:21:40 GMT
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